Income Tax Slabs 2023-24 for Salaried Employees/Salaried Persons: Finance Bill 2023 has proposed new income tax slabs and rates under the New Tax Regime. The announcement of new tax slabs and rates under the new regime by Finance Minister Nirmala Sitharaman during the Budget 2023 speech has raised several questions in the minds of salaried taxpayers/persons. The following details will remove all confusion about the new tax slab and rates applicable to salaried employees.
Salaried employees/persons can file their Income Tax Returns (ITR) either under the Old Tax Regime or the New Tax Regime as per their choice. Both options will be available when you will be filing ITR for Assessment Year (AY) 2023-24. The last date for doing so would be July 31, 2023. There is no change in this regard. However, the New Tax Regime will appear as the default regime on the e-filing website. Salaried employees will have the option to go for Old Tax Regime as well. (Also check: Tax slabs for super senior citizens)
Which Tax Slab and Rate will apply?
For filing ITR in 2023 (i.e. for AY 2023-24 or FY 2022-23), the applicable tax slab and rates for salaried persons will be the same as it was in the previous year. The new changes proposed by Finance Minister Nirmala Sitharaman in Budget 2023 will be applicable next year, i.e. for AY 2024-25.
The slab and rates for ITR filing in AY 2023-24 will be as follows:
New Tax Regime Slabs and Rates for Salaried Persons/Employees ITR Filing in AY 2023-24 (FY2022-23)
0 to Rs 2.5 lakh: NIL
Rs 2.5 to Rs 5 lakh: 5% above Rs 2.5 lakh
Rs 5 lakh to Rs 7.5 lakh: Rs 12,500 + 10% above Rs 5 lakh
Rs 7.5 lakh to Rs 10 lakh: Rs 37,500 + 15% above Rs 7.5 lakh
Rs 10 lakh to Rs 12.5 lakh: Rs 75,000 + 20% above Rs 10 lakh
Rs 12.5 lakh to Rs 15 lakh: Rs 1,25,000 + 25% above Rs 12.5 lakh
Above Rs 15 lakh: Rs 1,87,500 + 30% above Rs 15 lakh
Old Tax Regime Slabs and Rates for Salaried Persons/Employees ITR Filing in AY 2023-24 (FY2022-23)
Rs 2.5 lakh: NIL
Rs 2.5-5 lakh: 5% above Rs 2.5 lakh
Rs 5-10 lakh: 12,500 + 20% above Rs 5 lakh
Above 10 lakh: Rs 112,500 + 30% above Rs 10 lakh
New Tax Regime Slabs and Rates for Salaried Persons/Employees ITR Filing in AY 2024-25 (FY2023-24)
- 0-Rs 3 lakh: Nil;
- Rs 3-6 lakh: 5%
- Rs 6-9 lakh: 10%
- Rs 9-12 lakh: 15%
- Rs 12-15 lakh: 20%
- Above Rs 15 lakh: 30%
How to calculate Income Tax
Salaried persons/employees can use the following Income Tax Calculator for calculating their tax liability for AY 2023-24 and Ay 2024-25
Budget 2023 proposed no change in tax slabs and rates under the Old Regime. Under the New Regime, Finance Bill 2023 has included a Standard Deduction of Rs 50,000 for salaried persons.
